The compromise was brokered by Rotorua MP Todd McClay who had been working with the three groups since November last year to settle an almost 20-year dispute between the regional council and the farming community which ended up in the Environment Court.
"There's only one group of losers today and that would be the lawyers ... the winners are the people of Rotorua and New Zealand who will ultimately benefit from this agreement," Mr McClay said.
Lake Rotorua Primary Producers' Collective chairman Dr Tanira Kingi said agriculture and farming were integral to the local economy and welcomed the signing.
"The collective's decision to sign this agreement demonstrates the willingness of farmers and landowners within the catchment to work with the regional council to restore the lake while maintaining the viability of the local farming sector.
"The agreement is also an important step towards getting more certainty around the nutrient reduction targets, timeframe, available resources and the process going forward," Dr Kingi said.
Bay of Plenty Regional Council chief executive Mary-Anne Macleod said the agreement meant the parties could focus on work to support farming and clean up Lake Rotorua rather than wasting time and resources on a protracted and expensive legal challenge.
Ms Macleod said work would now begin with the Lake Rotorua Stakeholder Advisory Group and the regional council to develop rules and incentives required to achieve the necessary nutrient reductions.
The advisory group is made up of representatives from the Lake Rotorua Primary Producers Collective, Lakes Water Quality Society, Bay of Plenty Regional Council, Rotorua District Council, Te Arawa Lakes Trust, Office of the Maori Trustee, the forestry sector, Te Arawa landowners and small block owners.
Lakes Water Quality Society spokesman Ian McLean said the deal fell short of what the society had hoped for, but was still a turning point for restoring the lake's health. "This, I think, shows what is possible with the right leadership and as such it's a demonstration to the rest of the country that it's possible to have win-win situations," he said.
Rotorua and Taupo Federated Farmers provincial president Neil Heather said farmers recognised the work that had to be done to bring Lake Rotorua back from the brink and was pleased the role of agriculture and its importance to jobs and income in the region had been recognised.
"We are committed to working closely with the regional council in partnership to do what needs to be done for Lake Rotorua," he said.
-additional reporting APN News & Media